Fully leased St Kilda Road investment

2011-11-11T06:00:00Z

570 St Kilda Road, Melbourne

MELBOURNE, 11 November 2011- In a rare opportunity to purchase a fully leased office building on Melbourne’s St Kilda Road, Jones Lang LaSalle in conjunction with Colliers International are offering an office investment anchored by Fujitsu Australia.

570 St Kilda Road, Melbourne is being offered for sale by Expressions of Interest by James Kaufman and Robert Anderson of Jones Lang LaSalle and Leigh Melbourne and Nick Rathgeber of Colliers International.

Located just 3 kilometres from the Melbourne CBD, the property provides approximately 7,749 square metres of good quality office accommodation, incorporating a striking double height ground floor foyer, 7 upper office levels and 2 levels of secure basement parking for 143 vehicles. The building incorporates a side core design and average floor plates of 1050 sqm, providing flexible space for a broad range of corporate tenants.

570 St Kilda Road is fully leased to high quality tenants including Bravura Solutions Limited, Conneq Infrastructure Services, K Line Australia and anchor tenant Fujitsu Australia, who occupy 41% of the net lettable area until April 2016, providing a fully leased net income of $2,358,000 per annum. The staggered lease expiry significantly reduces the vacancy risk in this building.

The property is surrounded by diverse amenity including Albert Park Lake, Fawkner Park, and Botanical Gardens with immediate access to public transport and major road networks.

According to Jones Lang LaSalle Research, vacancy along the famous St Kilda road boulevard has experienced a strong turnaround, tightening from 13.7% at the start of the year to 11.5% in Q3/2011 and down to 4.5% in the A grade buildings.

In the past 6 months St Kilda Road has seen a large increase in leasing activity with Holmesglen Institute, Spotless, Australand, The Australian Red Cross and Abigroup all having relocated into the precinct.

Colliers Director, Nick Rathgeber said “Renewed interest from high calibre tenants moving to St Kilda Road is having a positive influence on occupancy levels and rental growth forecasts.”

Jones Lang LaSalle’s Director James Kaufman said “570 St Kilda Road presents investors with an ideal opportunity to capitalize on the upward swing in the current market cycle with excellent forecast reversionary upside and potential yield compression prospects in the medium term as the vacancy rate continues to decline,” said Mr Kaufman.

“The opportunity to purchase 570 St Kilda Road has come to the market because our client has decided to increase their exposure to the Melbourne office market by purchasing a much larger core passive asset in the Melbourne CBD,” said Mr Kaufman.

The property is offered for sale by Expressions of Interest closing Friday the 9th of December 2011.